Tom, an executive for a large corporation, enjoys the challenge of preparing his tax return. He is aggressive in preparing his return and searches through all the available publications to reduce his tax liability. In all the years Tom has completed his return, he has never been audited. However, in preparing his 2012 tax return, Tom misinterpreted a complex change in the law and is being audited. Aware that he probably should have an expert represent him before the IRS, Tom has hired Josephine, a local CPA. During the audit process, Josephine finds expenses that Tom had failed to deduct. However, the IRS also disallowed some of Tom’s other deductions. During a meeting, Josephine and the IRS agent agree on Tom’s revised taxable income. When Josephine receives the auditor’s change letter, she checks the agent’s calculation and finds that the agent has miscalculated the new tax liability by $750 in Tom’s favor. In fact, Tom will now receive a refund. When Tom receives his copy of the letter, he leaves a message on Josephine’s voice mail congratulating her on her work. You are Josephine’s assistant. Josephine asks you to write a letter to Tom explaining the course of action she must take.